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NOTE: All options below are European option. I. Consider the following option. Long a call option with X-price $0.85/C$ at a premium of $0.01/C$ 1.

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NOTE: All options below are European option. I. Consider the following option. Long a call option with X-price $0.85/C$ at a premium of $0.01/C$ 1. Plot the payoff chart of the above option. (20 points) 2. Mark the break-even point. ( 2 points) 3. Write up the maximum net profit and loss on the grid paper. ( 3 points) II. Consider the following option. Short a put option with X-price $0.87/C at a premium of $0.02/C$ 1. Plot the payoff chart of the above option ( 20 points). 2. Compute and mark the break-even point. ( 2 points). 3. Write up the maximum net profit and loss on the grid paper ( 3 points). III. Consider the following option strategy of two put options. Long a call option with X-price $0.89/C at a premium of $0.02/C \$ Short a call option with X-price $0.99/C$ at a premium of $0.01/C$ 1. Plot the payoff chart of the above option strategy (15 points). 2. Compute and Mark the break-even point on the grid paper ( 4 points). 3. Write up the maximum net profit and loss on the grid paper ( 4 points). 4. Name the above option strategy ( 2 points)

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